![]() In addition to these pressures, companies must navigate the complexities of a late-cycle financial environment - including increased volatility - which can create incentives to maximize short-term returns at the expense of long-term growth. ![]() Fueled in part by social media, public pressures on corporations build faster and reach further than ever before. These issues range from protecting the environment to retirement to gender and racial inequality, among others. Unnerved by fundamental economic changes and the failure of government to provide lasting solutions, society is increasingly looking to companies, both public and private, to address pressing social and economic issues. Trust in multilateralism and official institutions is crumbling. In response, some of the world's leading democracies have descended into wrenching political dysfunction, which has exacerbated, rather than quelled, this public frustration. Around the world, frustration with years of stagnant wages, the effect of technology on jobs, and uncertainty about the future have fueled popular anger, nationalism, and xenophobia. Many see increased risk of a cyclical downturn. Market uncertainty is pervasive, and confidence is deteriorating. As we enter 2019, commitment to a long-term approach is more important than ever - the global landscape is increasingly fragile and, as a result, susceptible to short-term behavior by corporations and governments alike. As a fiduciary to these clients, who are the owners of your company, we advocate for practices that we believe will drive sustainable, long-term growth and profitability. A report earlier this year found that giant global asset managers including BlackRock were still pumping tens of billions of dollars into new coal projects and major oil and gas companies.Each year, I write to the companies in which BlackRock invests on behalf of our clients, the majority of whom have decades-long horizons and are planning for retirement. The company remains a major shareholder in the likes of Glencore and "coal intensive miners" Exxaro, Peabody and Whitehaven, Bivaro's letter to Fink on Nov. I really don't think this is in the best interest of the investor, upon which on a fiduciary basis they invest the money, and of course it's not in the best interest of any shareholder."īivona also took aim at BlackRock's 2020 promise to clients to exit thermal coal investments, which it says in its client letter on sustainability that the "long-term economic or investment rationale" no longer justifies.īluebell noted that this commitment excludes passive funds such as index trackers and ETFs, which constitute 64% of BlackRock's more than $10 trillion in assets under management. "In our latest activist campaign at Richemont, they have been opposing the increase of board representation for investors owning 90% of the company from one to three. "We see BlackRock endorsing a number of bad practices from a governance, social and environmental perspective which is not actually in tune with what they say," Bivona said. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |